India: Silico manganese prices rise amidst improved steel market sentiment

The improving outlook for steel has led to an increase in silico manganese prices in India since last week. As per SteelMint’s assessment, Raipur-based producers offered material at around 75,400/t exw, up INR 1,900/t w-o-w, while Durgapur material was priced at 75,200/t exw, up INR 1,200/t w-o-w.

Producers’ quotes for grade 60-14 both ex-Raipur and Durgapur remain at about INR 75,000-76,500/t.

However, traders’ offers remained at around INR 74,500-76,000/t exw in both Raipur and Durgapur amid rising prices of silico manganese in the domestic market.
During the week, SteelMint recorded trade volumes of around 4,300 tonnes (t) of manganese alloys on the domestic market.

Responding to overseas enquiries, exporters offered at around $935/t FOB for 60-14 grade, up $15/t from last week, while prices for the 65-16 grade were assessed at $1,040/t FOB, up $20/t w-o-w. As a result of improved enquiries from overseas, silico manganese export prices edged up.

SteelMint recorded trade volumes in the export market at around 3,500 t amid improved demand.

Factors supporting silico manganese prices

• Improving steel sentiment: Steel prices in domestic and trade channels surged in India as a result of improved sentiments in the local steel market brought on by the withdrawal of export tariff on 18 November. Due to the rising cost of steel, silico manganese prices rose last week. SteelMint’s domestic steel billet index was at INR 43,250/t exw-Raipur on 22 November, up INR 1,000/t w-o-w.
• Supply-demand mismatch: Indian producers experienced good demand in the spot market. The majority of big producers are already booked through mid-December 2022. In addition, some producers held off on raising their prices in the foreseeable future. As a result of panic buying on the domestic market, silico manganese prices increased.

Outlook
Price stability for silico manganese is possible in the near future. The price of silico manganese may rise in the near future due to the improving demand for steel. Prices have space to rise further as it looks that export inquiries have resumed in the market.